Comprehensive Stock Comparison
Compare Tyler Technologies, Inc. (TYL) vs Salesforce, Inc. (CRM) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | CRM | 9.6% revenue growth vs TYL's 9.5% |
| Value | CRM | Lower P/E (16.5x vs 28.3x), PEG 1.35 vs 2.66 |
| Quality / Margins | CRM | 18.0% net margin vs TYL's 13.5% |
| Stability / Safety | TYL | Beta 0.68 vs CRM's 1.04 |
| Dividends | CRM | 0.9% yield; 2-year raise streak; TYL pays no meaningful dividend |
| Momentum (1Y) | CRM | -34.0% vs TYL's -41.7% |
| Efficiency (ROA) | CRM | 6.6% ROA vs TYL's 5.6%, ROIC 10.9% vs 6.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Tyler Technologies is a software company that provides integrated information management solutions exclusively for the public sector — including government agencies, courts, schools, and utilities. It generates revenue primarily through enterprise software licensing and maintenance fees (roughly 70% of revenue), appraisal and tax software services (about 20%), and digital government services through its NIC segment (around 10%). The company's key competitive advantage is its deep specialization in public sector workflows — creating high switching costs through mission-critical, integrated systems that span entire government operations.
Salesforce is a cloud-based customer relationship management (CRM) software company that helps businesses manage sales, service, marketing, and commerce operations. It generates revenue primarily through subscription fees for its SaaS platform—with sales cloud (~30%), service cloud (~25%), and platform/other (~45%) being its main segments. Its competitive moat lies in its massive ecosystem of integrated applications, enterprise data architecture, and high switching costs for customers deeply embedded in its platform.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
CRM leads in 5 of 6 categories — strongest in Financial Metrics and Valuation Metrics. 1 category is tied.
Financial Metrics (TTM)
CRM is the larger business by revenue, generating $41.5B annually — 17.8x TYL's $2.3B. Profitability is closely matched — net margins range from 18.0% (CRM) to 13.5% (TYL). On growth, CRM holds the edge at +12.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TYLTyler Technologie… | CRMSalesforce, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $2.3B | $41.5B |
| EBITDAEarnings before interest/tax | $462M | $11.4B |
| Net IncomeAfter-tax profit | $316M | $7.5B |
| Free Cash FlowCash after capex | $638M | $14.4B |
| Gross MarginGross profit ÷ Revenue | +45.3% | +77.7% |
| Operating MarginEBIT ÷ Revenue | +15.3% | +21.5% |
| Net MarginNet income ÷ Revenue | +13.5% | +18.0% |
| FCF MarginFCF ÷ Revenue | +27.3% | +34.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +6.3% | +12.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +0.7% | +18.3% |
Valuation Metrics
At 25.0x trailing earnings, CRM trades at a 57% valuation discount to TYL's 58.6x P/E. Adjusting for growth (PEG ratio), CRM offers better value at 2.04x vs TYL's 5.51x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | TYLTyler Technologie… | CRMSalesforce, Inc. |
|---|---|---|
| Market CapShares × price | $15.3B | $187.4B |
| Enterprise ValueMkt cap + debt − cash | $15.2B | $186.8B |
| Trailing P/EPrice ÷ TTM EPS | 58.63x | 24.97x |
| Forward P/EPrice ÷ next-FY EPS est. | 28.29x | 16.54x |
| PEG RatioP/E ÷ EPS growth rate | 5.51x | 2.04x |
| EV / EBITDAEnterprise value multiple | 33.54x | 20.95x |
| Price / SalesMarket cap ÷ Revenue | 7.14x | 4.51x |
| Price / BookPrice ÷ Book value/share | 4.55x | 3.15x |
| Price / FCFMarket cap ÷ FCF | 25.26x | 13.01x |
Profitability & Efficiency
CRM delivers a 12.6% return on equity — every $100 of shareholder capital generates $13 in annual profit, vs $6 for TYL. CRM carries lower financial leverage with a 0.11x debt-to-equity ratio, signaling a more conservative balance sheet compared to TYL's 0.19x. On the Piotroski fundamental quality scale (0–9), CRM scores 8/9 vs TYL's 7/9, reflecting strong financial health.
| Metric | TYLTyler Technologie… | CRMSalesforce, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +5.6% | +12.6% |
| ROA (TTM)Return on assets | +5.6% | +6.6% |
| ROICReturn on invested capital | +6.7% | +10.9% |
| ROCEReturn on capital employed | +7.7% | +11.9% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 8 |
| Debt / EquityFinancial leverage | 0.19x | 0.11x |
| Net DebtTotal debt minus cash | -$106M | -$590M |
| Cash & Equiv.Liquid assets | $745M | $7.3B |
| Total DebtShort + long-term debt | $638M | $6.7B |
| Interest CoverageEBIT ÷ Interest expense | 124.09x | 44.14x |
Total Returns (with DRIP)
A $10,000 investment in CRM five years ago would be worth $9,104 today (with dividends reinvested), compared to $7,435 for TYL. Over the past 12 months, CRM leads with a -34.0% total return vs TYL's -41.7%. The 3-year compound annual growth rate (CAGR) favors CRM at 6.6% vs TYL's 3.4% — a key indicator of consistent wealth creation.
| Metric | TYLTyler Technologie… | CRMSalesforce, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -18.6% | -23.2% |
| 1-Year ReturnPast 12 months | -41.7% | -34.0% |
| 3-Year ReturnCumulative with dividends | +10.4% | +21.1% |
| 5-Year ReturnCumulative with dividends | -25.6% | -9.0% |
| 10-Year ReturnCumulative with dividends | +194.8% | +192.3% |
| CAGR (3Y)Annualised 3-year return | +3.4% | +6.6% |
Risk & Volatility
TYL is the less volatile stock with a 0.68 beta — it tends to amplify market swings less than CRM's 1.04 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. CRM currently trades 64.3% from its 52-week high vs TYL's 56.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TYLTyler Technologie… | CRMSalesforce, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.68x | 1.04x |
| 52-Week HighHighest price in past year | $626.56 | $303.07 |
| 52-Week LowLowest price in past year | $283.72 | $174.57 |
| % of 52W HighCurrent price vs 52-week peak | +56.6% | +64.3% |
| RSI (14)Momentum oscillator 0–100 | 48.7 | 47.5 |
| Avg Volume (50D)Average daily shares traded | 513K | 8.6M |
Analyst Outlook
Wall Street rates TYL as "Buy" and CRM as "Buy". Consensus price targets imply 53.5% upside for CRM (target: $299) vs 33.6% for TYL (target: $474). CRM is the only dividend payer here at 0.85% yield — a key consideration for income-focused portfolios.
| Metric | TYLTyler Technologie… | CRMSalesforce, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $473.91 | $299.00 |
| # AnalystsCovering analysts | 35 | 97 |
| Dividend YieldAnnual dividend ÷ price | — | +0.9% |
| Dividend StreakConsecutive years of raises | 1 | 2 |
| Dividend / ShareAnnual DPS | — | $1.66 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +6.7% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Tyler Technologies,… (TYL) | 100 | 109.41 | +9.4% |
| Salesforce, Inc. (CRM) | 100 | 119.26 | +19.3% |
Salesforce, Inc. (CRM) returned -9% over 5 years vs Tyler Technologies,… (TYL)'s -26%.
Chart 2Revenue Growth — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Tyler Technologies,… (TYL) | $841M | $2.1B | +154.3% |
| Salesforce, Inc. (CRM) | $8.4B | $41.5B | +394.8% |
Salesforce, Inc.'s revenue grew from $8.4B (2017) to $41.5B (2026) — a 19.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Tyler Technologies,… (TYL) | 19.5% | 12.3% | -36.9% |
| Salesforce, Inc. (CRM) | 3.8% | 18.0% | +366.6% |
Salesforce, Inc.'s net margin went from 4% (2017) to 18% (2026).
Chart 4P/E Ratio History — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Tyler Technologies,… (TYL) | 41 | 95.3 | +132.4% |
| Salesforce, Inc. (CRM) | 393.2 | 25 | -93.6% |
Tyler Technologies, Inc. has traded in a 41x–141x P/E range over 8 years; current trailing P/E is ~59x. Salesforce, Inc. has traded in a 25x–393x P/E range over 7 years; current trailing P/E is ~25x.
Chart 5EPS Growth — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Tyler Technologies,… (TYL) | 4.32 | 6.05 | +40.0% |
| Salesforce, Inc. (CRM) | 0.26 | 7.8 | +2900.0% |
Salesforce, Inc.'s EPS grew from $0.26 (2017) to $7.80 (2026) — a 46% CAGR.
Chart 6Free Cash Flow — 5 Years
Tyler Technologies, Inc. generated $604M FCF in 2024 (+91% vs 2021). Salesforce, Inc. generated $14B FCF in 2026 (+252% vs 2021).
TYL vs CRM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is TYL or CRM a better buy right now?
Salesforce, Inc. (CRM) offers the better valuation at 25.0x trailing P/E (16.5x forward), making it the more compelling value choice. Analysts rate Tyler Technologies, Inc. (TYL) a "Buy" — based on 35 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — TYL or CRM?
On trailing P/E, Salesforce, Inc. (CRM) is the cheapest at 25.0x versus Tyler Technologies, Inc. at 58.6x. On forward P/E, Salesforce, Inc. is actually cheaper at 16.5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Salesforce, Inc. wins at 1.35x versus Tyler Technologies, Inc.'s 2.66x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — TYL or CRM?
Over the past 5 years, Salesforce, Inc. (CRM) delivered a total return of -9.0%, compared to -25.6% for Tyler Technologies, Inc. (TYL). A $10,000 investment in CRM five years ago would be worth approximately $9K today (assuming dividends reinvested). Over 10 years, the gap is even starker: TYL returned +194.8% versus CRM's +192.3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — TYL or CRM?
By beta (market sensitivity over 5 years), Tyler Technologies, Inc. (TYL) is the lower-risk stock at 0.68β versus Salesforce, Inc.'s 1.04β — meaning CRM is approximately 52% more volatile than TYL relative to the S&P 500. On balance sheet safety, Salesforce, Inc. (CRM) carries a lower debt/equity ratio of 11% versus 19% for Tyler Technologies, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — TYL or CRM?
Salesforce, Inc. (CRM) is the more profitable company, earning 18.0% net margin versus 12.3% for Tyler Technologies, Inc. — meaning it keeps 18.0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CRM leads at 21.5% versus 14.0% for TYL. At the gross margin level — before operating expenses — CRM leads at 77.7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is TYL or CRM more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Salesforce, Inc. (CRM) is the more undervalued stock at a PEG of 1.35x versus Tyler Technologies, Inc.'s 2.66x. A PEG below 1.5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Salesforce, Inc. (CRM) trades at 16.5x forward P/E versus 28.3x for Tyler Technologies, Inc. — 11.8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CRM: 53.5% to $299.00.
07Which pays a better dividend — TYL or CRM?
In this comparison, CRM (0.9% yield) pays a dividend. TYL does not pay a meaningful dividend and should not be held primarily for income.
08Is TYL or CRM better for a retirement portfolio?
For long-horizon retirement investors, Salesforce, Inc. (CRM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.04), 0.9% yield, +192.3% 10Y return). Both have compounded well over 10 years (CRM: +192.3%, TYL: +194.8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between TYL and CRM?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. CRM pays a dividend while TYL does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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